QualTek Services Inc (fka QTEKQ)

[dlewisfl]

QTEK files 8k: Funding Agreement with Cornell.

http://www.sec.gov/Archives/edgar/data/1107714/000093173106000117/qtek-8k052306.txt

Most people wince when they see Cornell ... but this looks like a good deal where they don't have to sell shares at a steep discount like they have been doing in the past. It's not the typical "death spiral" Cornell deal that I've seen in the past.

I've e-mailed Andrew Haag about this deal just to confirm what I thought to be true. This deal eats up the remainder of shares the company has to sell (142M O/S as of last week according to 10Q, 56M being registered, A/S is 200M). QTEK is getting $2M once everything is approved. If the PPS makes it past .12 and Cornell exercises all warrants, there's an additional $5M of funding for QTEK.

One of Cornell's last deals was structured like this with a company around QTEK's price (XSNX.OB). They invested $850K in July and then $5M in December. Stock went from $0.10 to $2.90 and is still above a dollar. Looks like everyone did well with that deal.

This is it boys, the big funding deal that will either make or break this company. It's up to Steele & Company to start bringing in some serious revenues now that they have money to work with.